Atlanta Real Estate: What is going on in your area? (Decatur: townhouse, neighborhoods)

[BobKovacs]

Originally Posted by LovinDecatur

New, new, new seems to be the mantra. I can't fathom it, either.

In our case at least, the reason for "new, new, new", was because we'd had "old, old, old", and we were tired of it. A lack of closet/storage spaces, small bedrooms, constant painting/upgrades/renovations/repairs, insane heating/cooling bills, etc., made new the only choice for us. Now, other than cutting the lawn and changing the AC filters, I only do projects around the house if I want to, not because I have to- it leaves alot more spare time to spend with the kids.

[spacelord75]

Originally Posted by BobKovacs

In our case at least, the reason for "new, new, new", was because we'd had "old, old, old", and we were tired of it. A lack of closet/storage spaces, small bedrooms, constant painting/upgrades/renovations/repairs, insane heating/cooling bills, etc., made new the only choice for us. Now, other than cutting the lawn and changing the AC filters, I only do projects around the house if I want to, not because I have to- it leaves alot more spare time to spend with the kids.

I think, though, in the case to which they were referring...namely my situation where a development with re-sales only 2-3 years older than the new construction...this doesn't make sense. Literally, the exact same home is selling for a $20-30k premium due to being only 2-3 years newer.

[Iconographer]

Originally Posted by spacelord75

I think, though, in the case to which they were referring...namely my situation where a development with re-sales only 2-3 years older than the new construction...this doesn't make sense. Literally, the exact same home is selling for a $20-30k premium due to being only 2-3 years newer.

That's right, spacelord...I was simpatica with your perplexity over a buyer paying such a high premium for a never-lived-in space...kind of like buying a brand new car, IMO, then driving it off the lot to find it's immediately lost 10M of its' value.

[BGS99]

Originally Posted by LovinDecatur

That's right, spacelord...I was simpatica with your perplexity over a buyer paying such a high premium for a never-lived-in space...kind of like buying a brand new car, IMO, then driving it off the lot to find it's immediately lost 10M of its' value.

Ahh the car depreciation analogy.

So that brand new townhome immediately loses value when purchased.
But that older one right around the corner does not.

[plessthanpointohfive]

But can you really call a house in the SAME development older? For real older? If it takes 3 years to build the entire development aren't they all really the same age? What value is there to the brand new one versus the 3 year old one?

I can tell that the 3 year old one more than likely has the kinks worked out.

We're not talking about custom homes here, where you're checking out the construction the entire time. We're talking about tract homes, build to spec, designed to make the builders a lot-o-money.

[BGS99]

Originally Posted by plessthanpointohfive

But can you really call a house in the SAME development older? For real older? If it takes 3 years to build the entire development aren't they all really the same age? What value is there to the brand new one versus the 3 year old one?

I can tell that the 3 year old one more than likely has the kinks worked out.

We're not talking about custom homes here, where you're checking out the construction the entire time. We're talking about tract homes, build to spec, designed to make the builders a lot-o-money.

The value is not for you to determine. The value will be determined by the buyers. If buyers don't want 3 year old homes, guess what.....3 year old homes dont get bought. It is counter productive to tell buyers why you think they made the wrong decision. Your personal needs, wants or preferences do not apply to every buyer. In this market with more sellers than buyers, people will cherry pick and buy exactly what they want based on their definition of value, not yours.

[plessthanpointohfive]

Uh....I'm not selling my 85 year old house. I'm talking about ridiculous the concept is that brand new is somehow better than 3 years old - and how it's a WASTE of money unless it's a custom home.

Dig your panties out of your rear, please. They're making your grumpy.

[BGS99]

Originally Posted by plessthanpointohfive

Uh....I'm not selling my 85 year old house. I'm talking about ridiculous the concept is that brand new is somehow better than 3 years old - and how it's a WASTE of money unless it's a custom home.

Dig your panties out of your rear, please. They're making your grumpy.

Obvisoulsy its not so "ridiculous" or a "waste" if people are buying them.

[JasonPaul]

I wouldn't get an older home if I could get a new one for around the same price. The asking price may be close but what are the selling prices? Say the sellers are asking for the older home 200k and the new home the builder is asking 220k but a person offers 200k for the new home and gets it then he made off better going for the new home. Does the older home with the exact same floor plan have the exact same upgrades, or lot premium? Maybe the new buyers never thought it was possible to get into the neighborhood before and now it being a buyer’s market they can afford a brand new move in ready townhouse. They stay 5 years in it and sell a 5 year old townhome instead of trying to sell an 8 to 9 year old townhome.

[Iconographer]

Spacelord was addressing a very specific situation, not debating all newer vs older housing...it would be ludicrous to say that newer is better in all cases.
It is my observation in the Decatur/N Decatur/N Druid Hills area townhouse market that all things being equal, you're going to get a better deal on a 10 yo house over a brand new one.